Check Your Credit Report: What Can Lower Your Credit Score

Don’t wait for the time when you’ll be denied of a loan or credit. Look into your credit report to avoid inaccurate or missing information in your credit report. It is important to check credit report to avoid raising your borrowing costs or even experience delays in making a major purchase. Here’s a list of the things that can lower your credit score.

check-credit-report

  • Acquiring too many credit cards

Though acquiring many credit cards has certain advantages, credit cards is still a type of unsecured debt. Having access to all of them may reflect to potential creditors as an incapability to repay a new obligation. However, having only one credit card that also happens to be maxed out is incredibly damaging to your credit score. Having only one credit card that also has a very low balance relative to the credit limit is very helpful to your credit score.

  • Not paying your bills on time

Not only will you piled up debt or a bad credit score. Sometimes, not paying your bills on time can cause cancellation of your card. You must consider paying bills as one of your important obligations for your past payment history is one of the biggest factors that affect your credit score. Once or twice late payment may not particularly cause damage to your record but making a habit of it will surely count against you.

  • Not paying the required minimum amount

Creditors will eventually report your account as past due, if you happen to not pay the minimum amount due. Also, not paying the required minimum amount will cause you late fees or even additional interest charges. Better pay the required minimum amount to avoid a bad record when you check credit report.

  • Not paying attention to your debt levels

Owing a lot of money on your credit cards can hinder you of an approval for potential creditors. Creditors also use this information to evaluate loan approval or interest rate charges (higher interest rates are used to compensate for higher risk).

  • Not updating creditors of change of address or change of names

Failing to notify your creditors that you’ve changed address can bring you the risk of not receiving bills on time and result to late payments with additional charges. Meanwhile, failure to update them with a name change can result in your credit report not accurately reflecting the credit you’ve worked to build. Check credit score regularly and don’t fail in updating them with these kinds of changes.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

2 Comments
  1. I’ve heard that checking on your credit score too often can cause your credit score to go down. Is that correct? And applying too many times for credit cards (which initially checks your credit) lowers your scores too….? Right. I’m so confused. If you could help me understand I’d appreciate it.

    • Hi Tami!

      Checking your credit score as often as you like don’t have an effect on your credit score.

      But inquiries from banks where you apply a loan or credit card, it will definitely affect your credit score. It will lower your credit score by a few points and it will remain on your credit report for 2 years.

      Melanie

Leave a reply

NHBS Inc © 2024

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

Business Loans

Consumer Loans

New Horizon
Logo
Enable registration in settings - general